People now-a-days are going online in all aspects instead of choosing physical options, be it shopping or opening a high yield savings account with an online bank. Whereas looking into the list of online banks may end up creating confusions for you, there are actually two most popular names, Marcus and Ally. Now, the question is, which one is more preferable? Before deciding who should win the duel of Marcus vs Ally, it is necessary to understand the pros and cons of both the online banks.
Online banks are offering really high interest rates, making the consumers switch. Many people prefer keeping the money in savings account instead of investing it in stock market. Marcus and Ally are two of the top-tier brands for high yield savings accounts. Choosing one between them would require you understand what a high yield savings account is.
Defining High Yield Saving Account
A high yield savings account earns higher interest than a normal savings account. It means you can yield higher returns than traditional banks, if you have access to Marcus online banking or an Ally high yield savings account. The minimum amount required for these banks are also lower, compared to regular bank accounts. Overall, there is an opportunity of getting extra money when one chooses a Marcus online savings account or Ally high yield savings account.
Marcus vs Ally
Is Ally best online bank, or should you take your money to the Marcus money market? The choice is all yours but it is wiser to look at the pros and cons of the two leading online banks once.
Marcus Online Banking
Marcus is a wing of the Goldman Sachs Group, and has a line of products aimed towards investment pedigree. The account holder has to keep funds in the Marcus account within sixty days of opening the account. Otherwise Marcus closes the account.
Pros
- Marcus bank cd rates
- Investments and specialized loan accounts
- 24*7 live customer support
- The mobile app offers tracking cash flow
- Takes no fee, but third-party can charge fees sometimes, based on activities
Cons
- Cash deposit option is not available
- Doesn’t offer services like mortgages
- Money market or checking account not available
- Check deposit is not possible through mobile app
- No physical establishment
Ally High Yield Savings Account
The product and service range of Ally is wider than Marcus. Marcus money market is not as good as Ally’s money market accounts.
Pros
- 24*7 live customer support
- Money market accounts, IRAs, CDs, checking and savings available
- Services like mortgages and investment accounts
- Auto and Home financing
- Easy to access
Cons
- Cash deposit option is not available
- No physical establishment
- Saving rates are lower than Marcus
- Loaning options are limited
- Fees are higher
Which one to Choose?
Both the banks offer certain facilities and lack some other. Finding the best one, thus, depends entirely on the users’ own demands. You have to keep in mind why you are opening the high yield savings account with the online bank. If it for loans and higher savings rates, choose Marcus. For ease of access and diversified services, choose Ally. If no one between the two suits you, there is a plenty of other online banks, as well.
Conclusion
Annual Percentage Yields, however, fluctuate. If you choose an online bank depending on the APY it lists today, it does not at all mean it would be the same. It may change yearly or monthly, even within weeks. Interest rates also drop when the Fed cuts the rates. It happened in the recent past that both Marcus and Ally lowered interest rates ahead of the rate cuts by the Federal Reserve. The best actually depends on a person’s individual situations. When it is Marcus vs Ally, choose Marcus for higher savings rate and loans. You should choose Ally for mobile app facility and products.
